Municipal bonds pop in trading; Alabama, Mississippi, New Mexico Municipal in pipeline

By Cristal Cody

Tupelo, Miss., July 17 – Municipal bonds “popped along with Treasuries” on the day’s negative reports that included a Malaysian commercial airplane shot down in eastern Ukraine, a trader said.

Municipal bonds tightened 6 basis points to 10 bps on the long end, where “most of the concentration in activity was today,” the trader said.

The 10-year Treasury note yield tightened to 2.44% from 2.53% on Wednesday, while the 30-year bond yield fell 8 bps to 3.26%.

In new supply priced over the session, New York City Transitional Finance Authority brought $800 million of series 2015A future tax secured subordinate bonds, according to a market source. Final pricing details were not available by press time.

“It was a blowout,” a source said. “That deal just got sucked up easily.”

New supply ahead

Coming up in the primary market, the State of Alabama plans to offer $200,625,000 of general obligation refunding bonds, according to a preliminary official statement.

The series 2014-A bonds will price via a competitive sale on July 24.

Rice Advisory, LLC is the financial advisor.

Also down South, Mississippi Higher Education Assistance Corp. is set to offer $397 million of student loan asset-backed notes in two tranches this month, according to a preliminary offering memorandum.

BofA Merrill Lynch will manage the negotiated sale.

In other new deal announcements Thursday, the New Mexico Municipal Energy Acquisition Authority is in the pipeline with $722.91 million of gas supply revenue refunding bonds, according to a preliminary official statement.

RBC Capital Markets LLC will manage the negotiated sale.

Also ahead, the State Board of Regents of the State of Utah intends to bring a $277 million offering of student loan backed-notes.

The series 2014-1 Libor-indexed notes due Dec. 26, 2038 (/AA+/AAA) will price through a negotiated sale via bookrunner RBC Capital Markets, according to a preliminary offering memorandum.

The Regents of the University of Minnesota is on the calendar with an offering of $141,355,000 of series 2014B general obligation bonds (/AA/), according to a preliminary official statement.

RBC Capital Markets is the lead manager of the negotiated sale.

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